Hi,
I'm afraid I wasn't able to understand what was the desired behavior. The AjaxManager and the UpdatePanel are not set up similarly, so they produce different results. Could you be a little more specific as to what is supposed to happen when you select a file?
If you want the version with the UpdatePanel to behave like the one with the AjaxManager, you have to set it up like so:
Regards,
Bozhidar
the Telerik team
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